The UK Government has launched a public consultation on introducing mandatory ethnicity and disability pay gap reporting for large employers, in a move being welcomed by equality advocates as a long-overdue step toward greater workplace transparency.
A New Chapter in Pay Equality
The proposal would require organisations with 250 or more employees to publicly report disparities in average pay between ethnic groups and between disabled and non-disabled workers — mirroring the legal duty already in place for gender pay gap reporting since 2017.
In a joint foreword to the consultation, Cabinet Office Minister John Glen and Minister for Disabled People Mims Davies wrote:
“Ethnic minorities and disabled people continue to experience disparities in pay and career progression. Transparency is a critical tool for driving improvement, and we believe mandatory reporting could help address this.”
The consultation, which runs until 10 June 2025, is being led by the Cabinet Office and Department for Work and Pensions.
Why It Matters
While many organisations voluntarily publish ethnicity and disability pay data, campaigners have long argued that this patchwork approach lacks consistency and accountability. According to a 2023 analysis by the TUC, disabled workers earn on average 14.6% less than their non-disabled colleagues — equivalent to a loss of nearly £3,800 per year. Ethnic minority pay gaps vary widely by group but persist across most sectors.
Jemima Olchawski, Chief Executive of the Fawcett Society, responded to the announcement by saying:
“This is an important step forward. The gender pay gap reporting requirement has made a real difference. Now we need to apply the same standard to other key areas of inequality.”
Reaction from Employers and Advocacy Groups
The CBI and other major employer bodies have cautiously welcomed the move, while urging the government to ensure any new obligations are “clear, proportionate, and aligned with existing reporting frameworks.”
Meanwhile, the Equality and Human Rights Commission (EHRC) released a statement supporting the consultation:
“Mandatory pay gap reporting for ethnicity and disability would bring much-needed consistency and help drive the cultural shift toward workplace equity.”
What Comes Next?
The consultation is seeking views from businesses, unions, advocacy groups, and individuals on key questions, including:
- How should ethnic categories be defined?
- What thresholds should trigger the requirement?
- Should pay gap data be accompanied by narrative action plans?
If implemented, the new rules could come into effect as early as 2026, depending on legislative timelines and parliamentary approval.
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